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Lesson 1: Overview of •
Ideas
Industries
Marketing Management • Companies
____________________________ Importance of Marketing
Marketing is essential because it permits
businesses to maintain and establish a long- 1. Marketing can be used to educate the
lasting relationship with their consumers. public’s taste.
Marketing is a continuing strategy that helps 2. Marketing is the heart and soul of the
businesses flourish and succeed. Every company.
successful business requires customer 3. Marketing can make customers happy,
engagement. which makes companies profitable.

Defining Marketing If you question a person, The Marketing Framework: 5Cs, STP, and 4Ps
“What is marketing” he or she might respond in
one of the following ways: In marketing, the 5Cs are customer, company,
context, collaborators, and competitors. These
Marketing is advertising or sales Cs provide firms with a general frame to analyze
Marketers are people who buy and sell their entire business situation. The central
products players in the marketing exchange are the
Marketers are people who exchange customer and the company. The context includes
things for payment the macro environment. The collaborators and
competitors are the companies and people we
Marketing is said to be an exchange between a work with versus those we compete against.
company and its customers. Marketing is an
exchange relationship. This can be a friendly • Customers
mutual relationship. Customers don’t mind paying – the one who pays the products or services.
for purchases and often will spend a considerable
amount of money if they like what they are about to • Company
purchase. Companies like taking in profits that is for – the one who provides the products or services
sure, but great companies do value their in exchange for profit.
customers. They don’t take shortcuts and make
a profit out of their customers’ expense. • Context
– the bigger picture of the business. Things that
might affect businesses.

• Collaborators
– partners in providing the goods and services

• Competitors
– with the same product or service offerings

STP stands for segmentation, targeting, and

The company offers benefits to its customers and positioning. The idea is that a company or brand
seeks profit in return. cannot be apply to all people, so it is best to
identify groups or segments of customers who
What can we market? (GEEP-PIIIC) share similar needs and wants. By doing this, we
• Goods Services can quickly identify who will be our target market.
• Experiences
• Events • Segmentation
• People – Customers are not similar. They differ in their
• Places preferences, needs, and resources.
• Information
 • Targeting • Performance
– Attracting some of those customers makes – signifies all the financial and non-financial
better sense than going after others. results of a company.

• Positioning
– Communicate your benefits clearly to your Marketing Framework
intended customers.

The 8Ps are product, price, promotion, place,

people, processes, programs, and performance.

Marketers have conventionally distinguished

types of products that customers can buy: (CSS)

• Product • Convenience purchases

– Can be tangible (actual product) and o Staples – standard, frequently,
intangible (a service, ideas, or experiences). consumed goods such as bread and
This is what satisfies consumers’ needs and gas
wants. o Impulse purchases – candy or
chocolates
• Place • Shopping purchases – Lazada S
– where consumers can buy/avail the product • specialty purchases – new car, laptops,
or service. expensive cellphone

• Promotion B2B marketers have also said that there are

– it includes all types of programs, activities, three (3) kinds of purchases, namely: (SMN)
and advertising, be it online or offline, to
nurture a product or service. • Straight rebuy
– you’re out of soap, and you mindlessly get a soap
• Price of your usual brand in your basket
– it generates profit
• Modified rebuy
• People – you reach for your brand of soda, but you try a
– they represent everyone that has a role new flavor
during the buyer’s journey.
• New buy
• Processes – you’re buying deodorant for the first time and
– ways that ensure a smooth think, what attributes must you consider.
delivery/transaction of a product or service.
Customer Involvement
• Programs
– overall company’s portfolio. A holistic view • Low customer involvement
of the company’s marketing strategies and – customers don’t care, they won’t spend much
systems that are integrated and supported time researching or thinking about brands or
each other. attributes, and they will typically somewhat price
sensitive
 1. Problem Recognition
• Moderate customer involvement 2. Information Search
– customers spend effort prior to purchase. 3. Evaluation of Alternatives
They are smart shoppers. 4. Purchase Decision
5. Post-Purchase Evaluation
• High customer involvement
– purchases are expensive, brand matters. The buying process starts with recognizing the
problem, and there is a felt need and desire to solve
the issue before the actual purchase and continues
until such time that you obtained the product or
service, then the post-purchase evaluation.

1. Need or Problem Recognition – during this

stage, the consumer distinguishes a
problem or need that could be solved or
satisfied by a product or service. Problem
acknowledgment is the first stage of the
buyer decision process. An example of this
is “I’m hungry, and I need something to eat.”

The buying process is stable whether the buyer is

2. Information search – In the second stage
a consumer or a business. Consumer buying is
of the buyer decision process, once the
easy to relate to because it’s people buying
need is recognized, the consumer is
something for themselves or their household. In
stimulated to seek more information
business, the customer is an agent buying on
about the product or service they might
behalf of the organization.
need and transfers into the information
search stage. After identifying the needs,
Purchase Decision Making
the consumers will attempt to find products
or services to satisfy their needs. They will
The process of buyers’ decision or customer
start searching for a particular product or
buying process helps the market to identify how
service they prefer.
customers finish the journey from knowing
about a product or service to making the
➢ Sources of Information
purchase or availing decision.
Personal sources: This consists of family
In marketing and sales, understanding the
members, relatives, friends, neighbors,
customer’s buying process is crucial. A
acquaintance, and more.
marketing plan is based and anchored on the
buyer decision process that convinces the
Commercial source: This consists of salespeople,
consumers to buying the product or service for
advertising, dealers, packaging display, and more.
fulfilling the buyer’s or consumer’s problem.
Public sources: This consists of consumer rating
Five (5) stages in Buyer Decision Process (PIEPP)
organization, mass media, and more.

Experimental sources: This consists of using,

examining, handling, and more. (EPP)

1. Evaluation of Alternatives – During this

stage, the product or service is evaluated
by the brands in the choice set. This is the
third stage of the buying process. In
evaluating different alternatives and their
attractiveness, numerous points of
 information are collected from other
sources. The consumers consider based
Lesson 2: Marketing
on the following criteria: degree of Segmentation
importance, attributes of the product or
service, belief in the brand, customer ____________________________
satisfaction, price of the product, and Why Segment?
more to choose correctly.
Market Segmentation helps marketers be more
productive and efficient in time, money, and
2. Purchase Decision – The consumer will other resources. It allows companies to learn
decide if he will purchase the product or and know their target market. Through
avail of the service after a careful segmentation, companies can modify their
evaluation. They decide to buy the most marketing campaigns based on the customer
reliable and best brand. Their decision is segments, most likely to purchase their product or
usually influenced by external factors service because they gain a better understanding
such as comments or experiences of of their customer needs and wants
other people or situational factors.
A market segment is a minor group of people or
organizations with one or more common
3. Post-Purchase Evaluation – This is the characteristics that allow them to have the same
final stage of the buyer decision process; product needs. Everyone needs something to
the consumer takes action based on drink, but does everyone need bottled water or
satisfaction or dissatisfaction on the soda? Companies need to identify and divide the
purchase of the product or availing of the market through market segmentation for
service. companies to succeed and reach their
customers
TAKEAWAYS:

➢ Marketing is about finding out what

customers would want and providing it to
them to earn a profit.
➢ Marketing is finding a solution to the
customers’ problem by providing them
with choices and quality products and
services.
➢ This lesson highlights the relationship
between a customer and a company. Companies divide or split markets into identifiable
➢ The connection between 5Cs, STP, and and classifiable groups so that the marketing team
8Ps in marketing to see a clearer picture can create a custom or tailored fit marketing mix for
of marketing. the specific group.
What is Market Segmentation? 2. Demographic Segmentation – is one of
the most commonly used forms of
We define the market segment as a group of Segmentation and the simplest because
customers that share similar preferences toward the products and services the consumer
a particular brand. The activity of distributing a purchase, how the consumer use those
broad consumer or business market, usually products, and how much they are willing
consisting of potential and existing customers, into to pay on the said product is most often
sub-groups of consumers based on shared based on demographic factors
characteristics.
Demographic Elements: (FREE GORAI)
Market Segmentation is the practice of dividing ➢ Family size
your target market into approachable groups. ➢ Race
Market Segmentation creates subsets of a market ➢ Ethnicity
based on DEMOGRAPHICS, NEEDS, PRIORITIES, ➢ Education level
COMMON INTERESTS, AND OTHER ➢ Gender
PSYCHOGRAPHIC OR BEHAVIORAL CRITERIA ➢ Occupation
used to better understand the target audience. ➢ Religion
➢ Age
Market Segmentation is the research that ➢ Religion
determines how your organization divides its ➢ Income
customers or cohort into smaller group based
on characteristic such as, AGE, INCOME, and 3. Firmographic Segmentation – From the
PERSONALITY OR BEHAVIOR. These segments word itself, it looks at firms or
can later be used to optimize products and organizations. This type of market
advertising to different customers. segmentation is similar to demographic
segmentation. The only difference is
demographic focuses on individuals,
while firmographic emphasizes to firms.

➢ Industry
➢ Sales Value
➢ Size
➢ Methodologies

Firmographic Demographic
Business Consumer
Types of Market Segmentation Industry Gender
Location Age
1. Geographic Segmentation – this Size Profession
segmentation is based on geographical Status or Structure Income
boundaries. Understanding the climates Performance Family Status
and geographic regions of customer groups
can help determine where to sell and
advertise because potential customers 4. Behavioral Segmentation – It divides the
have preferences, needs, and interests customers and markets based on
that differ due to location. behaviors and decision-making patterns
like purchase consumption, frequency of
➢ Density usage, lifestyle. For example, younger
➢ Weather buyers may tend to buy body wash or liquid
➢ Country soap, while older consumer groups may
➢ Region choose soap bars.
(PBCCCEIOUU)
➢ Purchasing Behavior o Lotions and creams for females between 18
➢ Benefits Sought – 25 years old would focus more on skin
➢ Customer Journey fairness.
➢ Customer Satisfaction
➢ Customer Loyalty o Lotions and creams for females between 25
➢ Engagement Level – 35 years old promise to reduce wrinkles or
➢ Interest Based aging signs.
➢ Occasion or Timing
➢ Usage Based
➢ User Status 4. Review the target audience’s needs – the
marketer needs to review the preferences
5. Psychographic Segmentation – It focuses and needs of individuals belonging to each
on the psychological aspects of consumer sub-segment or segment.
behavior by dividing markets based on the
following criteria, namely: values, 5. Name your market segment – for a more
personality traits, lifestyle, interests, and accessible identification marketer should
opinions of consumers give an appropriate part, it makes the
implementation of strategies easier. For
➢ Lifestyles instance, a kid section can have different
➢ Opinions segments for infants, newborns, toddlers,
➢ Values and more.
➢ Interests
6. Marketing Strategies – Develop relevant
How do marketers segment the market? strategies to promote brands in each
Eight (8) steps in Market Segmentation segment. As a marketer, you can’t afford
to have the same design for all the
details. Make sure to connect the target
market to your product. For example, a
model promoting a sunscreen lotion has to
be shown working under the sun for the
desired impact.

7. Review the behavior – Marketers must

review the target audience’s behavior
regularly. Perceptions change, interest
differs, and demands may vary.

8. Size of the Target Market – Marketers,

should collect the necessary data to
1. Identify the target market – Who is your know the target market size of a
target market? Make sure that the particular product. This will help in the
individuals have something in common. sales planning and forecasting.

2. Identify expectations of the target market

– What product or features do you offer How to Evaluate the Segmentation In evaluating
to your consumers? It is crucial to find market segments, there are three (3) factors to
out the needs of the target audience. consider, namely:

1. Segment Size and Growth

3. Create subgroups – The target market 2. Segment Structural Attractiveness
should be well defined. For example, 3. Company objectives and resources
cosmetics for girls now come in different
categories:
 1. Segment Size and Growth – The Company
must analyze and collect the data about
sales, growth, rate, and the expected
profitability for different segments.

2. Segment Structural Attractiveness – To

properly evaluate the structural
attractiveness of the market segments. It
is said that a component becomes less
attractive if there are many healthy and
aggressive competitors. Prices and
profits will be limited due to the existence
of actual or potential substitute products.

3. Company Objectives – The Company

must consider its objectives and
resources. Even if a segment has the
right size and higher growth rate plus
structurally attractive if they cannot jibe
with its long-run goals, they can be
dismissed quickly.

TAKEAWAYS:

➢ Choosing the market segment (s) to serve

involves restating the visions concerning
corporate fit and the necessary information
needed in segmentation size and
profitability.

➢ Segment sizing is relatively important.

Knowing who your target market is
beneficial for you to quickly identify and
create a marketing plan focusing on a
specific target audience.

➢ The market segment, when done correctly,

will increase a company’s profitability and
success rate.